Which of the following is of least interest to an appraiser?
Question & Answer
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Value in exchange.
Value in exchange is the actual price a property would sell for in the market, which is fundamental to the sales comparison approach appraisers use. This is directly relevant to determining market value.
The original cost of the property.
Original cost is relevant to the cost approach of appraisal, which estimates value based on what it would cost to replace the property. This is one of the three primary valuation methods appraisers employ.
The objective value of the property.
The sales price received for comparable properties.
Sales prices of comparable properties are essential data points in the sales comparison approach, the most commonly used method in residential appraisals. This directly informs the appraisal process.
Why is this correct?
C is correct because 'objective value' refers to a personal opinion or judgment about what a property should be worth, which appraisers deliberately avoid. Appraisers focus on factual market data and analysis rather than subjective opinions.
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